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IRS Again Extends Estate Basis Reporting Deadline

Feb 29th 2016
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The due date for reporting the value of estate assets under Code Section 6035 has again been extended, from Feb. 29 to March 31.

Under Notice 2016-19, the IRS is allowing extra time for review of proposed regulations – expected soon – before taxpayers have to file Form 8971, Information Regarding Beneficiaries Acquiring Property From a Decedent, and any Schedule A.

The notice also recommends that executors and other persons required to file an estate tax return wait to prepare the Section 6035 statements until the US Treasury Department and IRS issue further guidance.

Issued earlier this month, Notice 2016-19 will be formally published on Feb. 29.

Section 6035 was created in the enactment of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, a short-term highway spending bill that was signed into law on July 31.

It imposes new reporting requirements for the value of property included in a decedent’s gross estate for federal estate tax purposes. The section requires an executor of an estate that must file an estate tax return to submit statements to the IRS and beneficiaries who inherit property within 30 days of the estate tax return’s due date. The section also applies to 6018(b) filers.

The law also added Section 1014(f), which requires consistent basis reporting between an estate and the beneficiary receiving property. Section 1014(f) provides rules requiring that the basis of certain property acquired from a decedent, as determined under Section 1014, may not be more than the value of the property as finally determined for federal estate tax purposes – or, if not determined, the value of that property as reported on a statement made under Section 6035.

For estates with returns due Aug. 1 of last year, the statements would have been due Aug. 31. The tight turnaround, given the law’s enactment a month earlier, had pushed the deadline to Feb. 29.

Related article:

IRS Delays Basis Reporting Due Date for Estates

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